the state of application development

The State ofApplicationDevelopmentIs IT Ready for Disruption?

2019/2020

OutSystems - The State of Application Development, 2019/2010 - 2019-05-14_v1.00

01

Contents

021. Executive Summary

032. Key Findings

043. About the Survey

054. Digital Transformation Challenges

155. The Challengesof Application Development

216. In Search of Speed

257. Developer Headcount, Skills, and Sourcing

298. Low-Code Is on the Rise

349. Low-Code Is Delivering

4010. Organizational Agilityand the Case for Low-Code

4211. Next Steps

4312. Demographics

02

The State of Application Development, 2019/2020

1. Executive Summary Organizational agility is more important today than ever. Digital transformation has dominated business strategy for several years. The quest has been to seize new market opportunities, to win, serve, and retain customers to fuel business growth, and to avoid being disrupted by competitors that are becoming more numerous and varied in nature.

As if these challenges weren’t enough, many business leaders, advisers, and even IT industry analysts are starting to worry about the global economic outlook in 2019–20. Agility is not just for growth—as Darwin taught us, adaptability is how species and businesses survive.

How agile is your organization? And, for that matter, how adaptable is your IT organization?

These questions serve as the backdrop to our sixth annual survey of IT professionals as we seek to better understand the state of application development. We set out with five critical questions in mind:

How are organizations’ app dev practices adapting to meet digital transformation and agility objectives?

What are the main challenges to meeting application development goals?

What strategies are IT teams employing to speed up application delivery?

Are these strategies working to overcome resource constraints and reduce backlogs?

Are new app dev practices such as low-code and citizen development making a difference?

Our research took us around the world, connecting us with more than 3,300 IT professionals in all kinds of industry across six continents. Our insights from that research are captured in the pages that follow.

12345

03

2. Key FindingsDigital Transformation Is a Work in ProgressEvaluating their progress with digital transformation on a six-point scale, on average, respondents awarded their organizations a score of 3.74, meaning digital transformation efforts are typically widespread, but not yet strategic or continuous.

Disruption Is a Rising ConcernUncertainty and disruptive threats appear to be on the rise. Asked to evaluate potential risks, senior respondents ranked changes in customer preference or behavior as their number one risk factor, closely followed by regulatory change, cyber-attack, and more nimble competitors.

Stock market volatility was the least of their concerns. Even so, 51% thought this was likely or very likely to disrupt their organization in the year ahead.

Demand for App Dev at All-Time HighThe number of applications respondents have slated for delivery in 2019 is 60% higher than last year’s assessment. Focusing on organizations with more than 500 employees, 65% of IT professionals said they had plans to deliver 10 or more apps, 38% plan to deliver 25 or more apps, and 15% said they plan to deliver 100 or more apps in 2019.

Development Time Is Faster—But Not for AllLast year, 54% of respondents said the average time to deliver a web application was 4 months or less. This year, that figure has risen to 61%. Mobile app development is little changed since last year, with just 55% on average saying that they deliver apps in 4 months or less.

Backlogs Remain Stubbornly LongSixty-four percent of IT professionals said they have an app dev backlog, and for 19% of these respondents, the backlog was more than 10 apps. Only 39% said their app dev backlog had improved in the last year, and 50% say it’s about the same.

Development Skills Are in Short SupplyThe vast majority of responding organizations have hired multiple app dev roles in the past year. Only 15% of respondents described such recruitment as easy, and for many specialties, recruitment was described as hard or very hard. Despite such recruitment, only 36% of organizations have larger app dev teams than a year ago. So, for many organizations, retention of developer talent appears to be an equally grave challenge.

Agile and Other Customer-Centric Practices Are on the RiseMost organizations have invested in customer-centric practices in the past year, including agile (60%), design thinking (30%), customer journey mapping (20%), and lean UX (11%). Despite these efforts, agile maturity is still lacking in many organizations, the average assessment being somewhere between “just started” and “well defined.”

Low-Code Is MainstreamForty-one percent of respondents said their organization was already using a low-code platform, and a further 10% said they were about to start using one. This correlates closely with the adoption forecast provided in last year’s report, in which we found 34% of respondents using low-code, and another 9% saying they were about to start.

Since 41% of respondents are using a low-code platform, in sections 8 and 9 of this report, we explore in depth how low-code is being used and how it is “moving the dial” for those who have adopted it.

04


3. About the Survey

In March 2019, we surveyed more than 3,300 IT professionals across six different continents.

You will find a detailed breakdown of respondent demographics in section 12, including job functions, geography, size of organization, and industries.

Over 80% of respondents were application developers, managers or IT leaders responsible for application development and delivery, or in related IT roles.

Those in senior IT roles and business leadership roles provided additional feedback regarding business transformation goals, disruptive challenges, and organizational agility.

Respondents shared their challenges with digital transformation, application development, delivery speed, and attracting and developing talent. They answered questions about low-code and, if they were using it, what kinds of applications they had delivered.

In the sections that follow, we’ll share our analysis of those results and conclude with what we gleaned about organizational agility and low-code.

05

4. Digital Transformation ChallengesRespondents with senior job functions were asked to identify their organization’s top digital transformation goals. They also shared their opinions about possible causes of disruption, the agility of their organization, and their top priorities for application development. Their answers underscore the crucial importance of adaptability for all organizations in 2019.

Top Goals for Digital TransformationFour priorities for digital transformation accounted for 68% of responses:

• Improve agility/accelerate innovation (22%)

• Reduce costs/improve efficiency (17%)

• Achieve growth in new markets (15%)

• Address evolving customer behaviors or preferences (14%)

Fig.1: Top Goals for Digital Transformation Source: State of Application Development 2019/2020. OutSystems ©

Meet evolving expectationsof employees

Outperform longstandingcompetitors

Improve cybersecurityresilience

Meet new regulatorycompliance requirements

Recover decliningbusiness performance

Outperformnew competitors

Address evolving customerbehaviors/preferences

Achieve growthin new markets

Reduce costs/improvee�ciency

Improve agility/accelerate innovation

Top Goals for Digital Transformation Source: State of Application Development 2019/2020. OutSystems ©

22%

17%

15%

14%

7%

6%

6%

5%

5%

4%

06


These priority rankings were consistent across most industries, with the following notable exceptions:

• Airlines and aerospace (including defense): Reducing costs or improving efficiency and outperforming longstanding competitors were the top priorities.

• Banks and financial services (not insurance): Meeting new regulatory and compliance requirements were ranked above addressing evolving customer behaviors or preferences.

• Education: Supporting growth was not a top priority, but addressing evolving customer behaviors and preferences, and meeting the evolving expectations of employees were top-four priorities.

• Government: Improving cybersecurity resilience was a top-three priority—the only industry sector to rank it so high.

Progress With Digital TransformationRespondents were asked to assess their organization’s progress with digital transformation, using a self-assessment matrix derived from Altimeter’s “Six Stages of Digital Transformation”:1

Table 1: Digital Transformation Maturity Self-Assessment Source: State of Application Development 2019/2020. OutSystems ©

1. Altimeter - The State of Digital Transformation 2018-2019.

Digital Transformation Maturity Assessment

Level 1 Unaware: We seem to ignore the risk of digital disruption.

Level 2 Isolated: Pockets of experimentation are happening in a few business areas.

Level 3 Widespread: Multiple experiments are coordinated by change agents with executive support.

Level 4 Strategic: We plan digital transformation ownership, effort, and investment in multiple business areas.

Level 5 Converged: A dedicated, overarching digital transformation team guides a consistent approach for the organization.

Level 6 Continuous: Our digital transformation team is funded to continuously innovate digitally at scale.

https://www.prophet.com/thinking/altimeter

07

The average digital transformation maturity score was 3.74, meaning digital transformation efforts are typically widespread, but many respondents were unwilling to describe their organization’s approach as strategic, converged, or continuous. The distribution of responses is shown in Fig. 2.

Fig. 2: Digital Transformation Maturity Level Source: State of Application Development 2019/2020. OutSystems ©

Responses varied depending on the role and seniority of respondents. Senior leaders from outside of IT provided an average digital maturity score of 3.38, CIOs 3.58, and all other IT roles (excluding the CIO) 3.83. Fig. 3 shows how these scores vary from the overall mean and reveals that people in IT (apart from the senior leadership team) may be overestimating their organization’s progress with digital transformation compared to more senior colleagues.

Fig. 3: Differing Opinions of Digital Transformation Source: State of Application Development 2019/2020. OutSystems ©

Level 1Unaware

Digital Transformation Maturity Level Source: State of Application Development 2019/2020. OutSystems ©

Level 2Isolated

Level 3Widespread

Level 4Strategic

Level 5Converged

Level 6Continuous

5%

19%17%

10%

18%

31%

-0.40 -0.35 -0.30 -0.25 -0.20 -0.15 -0.10 -0.05 0.00 0.05 0.10

Di�ering Opinions of Digital Transformation Maturity Source: State of Application Development 2019/2020. OutSystems ©

Senior Leader, VP, C-Level Executive - outside of IT (3.38)

IT Leader/CIO/CTO (3.58)

Mean (3.74)

IT Roles - excluding IT Leader/CIO/CTO (3.83)

08


Respondents from different industries had widely differing views on the progress their organization was making with digital transformation.

Fig. 4: Digital Transformation Maturity by Industry (Variance From Mean) Source: State of Application Development 2019/2020. OutSystems ©

Digital Transformation Maturity by Industry (Variance From Mean) Source: State of Application Development 2019/2020. OutSystems ©

-1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2

Telecommunications and Internet (4.09)

Education (3.20)

Agriculture (3.13)

Nonpro�t (2.93)

Utilities, Energy, and Extraction (3.98)

Software (3.92)

Banks and Financial Services (Not Insurance) (3.90)

Real Estate (3.85)

Consultant/Consultancy/SI (3.84)

Business Support and Logistics (3.83)

Food and Beverage (3.79)

Insurance (3.78)

Mean Digital Transformation Maturity (3.74)

Entertainment, Sports, and Leisure (3.66)

Transportation and Delivery (3.65)

Automotive (3.64)

Advertising and Marketing (3.59)

Retail and Consumer Durables Including Electronics (3.46)

Healthcare and Pharmaceuticals (3.41)

Airlines and Aerospace (Including Defense) (3.40)

Manufacturing (3.38)

Government (3.31)

Technology/Computers (4.10)

Construction, Machinery, and Homes (2.76)

09

Disruptive ForcesSenior respondents told us how likely they thought it was that their organization would be disrupted by external forces in the year ahead.

Fig. 5: Likely Causes of Disruption in the Year Ahead Source: State of Application Development 2019/2020. OutSystems ©

Only a minority of respondents described these potential disruptions as unlikely. Adding likely and somewhat likely together, the figures in rank order were:

• Significant changes in customer preference or behavior: 80%

• Disruptive regulatory change: 72%

• Disruptive cyber attack: 70%

• Digital disruption from an established competitor: 69%

• Digital disruption from a new competitor: 67%

• Government budget cuts: 58%

• Stock market volatility: 51%.

Somewhat LikelyLikely Unlikely

Likely Causes of Disruption in the Year Ahead

Likely Somewhat Likely Unlikely

0 20 40 60 80 100

Stock Market Volatility

Government Budget Cuts

Digital DisruptionFrom New Competitor

Digital Disruption FromEstablished Competitor

Disruptive Cyber Attack

Disruptive Regulatory Change

Signi�cant Changes in CustomerPreference or Behavior

Source: State of Application Development 2019/2020. OutSystems ©

10


Opinions about these risk factors varied considerably depending on organization size and industry. For example:

Table 2: Disruptive Fears - Variance by Industry Source: State of Application Development 2019/2020. OutSystems ©

AgilitySenior respondents were asked to assess their organization’s agility using a self-assessment matrix derived from Prosci’s “Agility Attributes Assessment”:2

Agility Self-Assessment

Table 3: Agility Self-Assessment Matrix Source: State of Application Development 2019/2020. OutSystems ©

Please describe your organization’s agility using this matrix. AgreeSomewhat

agreeSomewhat

disagreeDisagree

Agility is baked into our organization’s DNA

We regularly out-change our competitors and industry peers

We continually and systematically research and anticipate change

We execute planned changes well

We cope well with unplanned change

Source of Business Disruption Most Fearful Least Fearful

Disruption from stock market volatility

• Small organizations (<500 employees)

• Retail and consumer durables including electronics

• Large organizations (>10,000 employees)

• Government and education

Changes in customer preference or behavior• Insurance

• Retail and consumer durables including electronics

• Banks and financial services

• Government

Government budget cuts

• Government

• Education

• Healthcare and pharmaceuticals

• Business support, logistics, and transportation

Competitors (both established and new)• Banks and financial services

• Insurance

• Government

• Education

• Utilities, energy, and extraction

Disruptive regulatory change• Banks and financial services

(not insurance)

• Healthcare and pharmaceuticals

• Consultants and system integrators

11

2. Prosci Agility Attributes Assessment – prosci.com

Around three-quarters of respondents agreed or somewhat agreed with each of these statements.

Fig. 6: Organizational Agility Assessment Source: State of Application Development 2019/2020. OutSystems ©

0 20 40 60 80 100

Organizational Agility Assessment Source: State of Application Development 2019/2020. OutSystems ©

Agility is baked into ourorganization’s DNA

We regularly out-change ourcompetitors/industry peers

We continually and systematicallyresearch/anticipate change

We execute plannedchanges well

We cope well withunplanned change

Agree DisagreeSomewhat agree Somewhat disagreeSomewhat agree DisagreeAgree Somewhat disagree

https://www.prosci.com/resources/articles/organizational-agility-strategic-imperative

12


As shown in the following charts, respondents from different industries and sizes of organization had widely differing opinions about their organizations’ agility.

Fig. 7: Organizational Agility by Industry Source: State of Application Development 2019/2020. OutSystems ©

-20 -15 -10 -5 0 5 10

Technology/Computers/Telecoms and Internet (72%)

Manufacturing, Automotive, Airlines, Aerospace, and Defense (58%)

Utilities, Energy, and Extraction (56%)

Retail and Consumer Durables Including Electronics (48%)

Food and Beverage (69%)

Consultant/Consultancy/SI (67%)

Government and Education (66%)

Average Agility Score (66%)

Business Support, Logistics, and Transportation (64%)

Other (63%)

Banks and Financial Services (Not Insurance) (61%)

Healthcare and Pharmaceuticals (60%)

Insurance (60%)

Software (73%)

Organizational Agility by Industry Source: State of Application Development 2019/2020. OutSystems ©

13

Fig. 8: Organizational Agility by Organization Size Source: State of Application Development 2019/2020. OutSystems ©

Types of App to be Delivered in 2019We asked respondents to describe the two most important types of application that they would develop in 2019. In first place are apps used directly by customers or business partners (68%). Apps that support internal processes and operations, including analytics came second (63%). All responses are shown in Fig. 9. Responses for “Other” varied considerably. APIs, blockchain, e-commerce, ERP, and robotic process automation were among them.

Respondents had to select two answers, hence a total of 200%.

Fig. 9: Two Most Important Types of App Dev Projects Source: State of Application Development 2019/2020. OutSystems ©

-7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5

Di�ering Opinions of Digital Transformation Maturity Source: State of Application Development 2019/2020. OutSystems ©

500–4,999 Employees (60%)

>10,000 Employees (63%)

Average Agility Score (66%)

<500 Employees (70%)

5,000–10,000 Employees (60%)

Two Most Important Types of App Dev Projects

Apps that involve IoT

Apps that involve AI/machine learning

Apps that replace core legacysystems that run the business

Apps that support internal processesand operations, including analytics

Apps that are used directly bycustomers or business partners

Other (please specify)

68%

63%

39%

17%

10%

3%


14


As shown in Fig. 10, these priorities varied in different industries. Notably, there was a greater focus on internal apps rather than those used by third parties in utilities, energy, and extraction, as well as manufacturing, automotive, airlines, aerospace, and defense.

Fig. 10: App Dev Priorities by Industry Source: State of Application Development 2019/2020. OutSystems ©

Apps that support internal processes and operations, including analytics

Apps that involve IoT Other (please specify)

Apps that are used directly by customers or business partners

Apps that involveAI/ machine learning

Apps that replace core legacy systems that run the business

App Dev Priorities by Industry

Apps that are used directly bycustomers or business partners

Apps that support internal processeszand operations, including analytics

Apps that replace core legacy systemsthat run the business

Apps that involve AI/machine learning

Apps that involve IoT Other (please specify)

0 20 40 60 80 100

Banks and Financial Services(Not Insurance)

Business Support, Logistics,and Transportation

Consultant/Consultancy/SI

Food and Beverage

Government and Education

Healthcare and Pharmaceuticals

Technology/Computers/Telecoms and Internet

Software

Retail and Consumer DurablesIncluding Electronics

Other

Manufacturing, Automotive,Airlines, Aerospace, and Defense

Insurance

Utilities, Energy, and Extraction


15

5. The Challenges of Application DevelopmentThe responses to questions about the number of apps in the pipeline, maintenance, backlogs, and more revealed a great deal about the barriers and issues that affect application development.

The Relentless Demand for Custom ApplicationsFueled by digital innovation and differentiation initiatives, demand for application development seems higher than ever. Focusing on organizations with 500 or more employees, we found 65% have 10 or more apps planned for delivery in 2019. Thirty-eight percent have 25 or more apps planned in 2019.

Larger companies tended to have even more ambitious targets. Forty-two percent of companies with over 10,000 employees said they planned to develop 50 or more apps in 2019, compared to just 13% of companies with between 500 and 5,000 employees.


Fig. 11: Applications Planned for Development

Innovation vs. MaintenanceAs shown in Table 3, of all these apps slated for development, the majority are replacements for or updates to applications that already exist rather than innovative (net new) apps.

Table 4: Innovation vs. Maintenance Responses Source: State of Application Development 2019/2020. OutSystems ©

Applications Planned for Development Source: State of Application Development 2019/2020. OutSystems ©

35% 1 to 9 Apps

27% 10 to 24 Apps

15% 25 to 49 Apps

8% 50 to 99 Apps

15% 100 or more Apps

35%

27%

15%

8%

15%

35% 1 to 9 Apps

27% 10 to 24 Apps

15% 25 to 49 Apps

8% 50 to 99 Apps

15% 100 or more Apps

Question Answer Option Response

Roughly what percentage of the applications

you will develop in 2019 are new innovations,

rather than replacing and updating applications

that you already have?

Innovation less than 25% of all apps 44%

Innovation 26–50% of all apps 32%

Innovation 51–75% of all apps 15%

Innovation over 75% of all apps 9%

16


The overall split is therefore around 35% innovation and 65% maintenance. This broadly concurs with industry analyst reports which estimate that “keeping the lights on” activities consume around 75% of most IT organizations’ resources.

Fig. 12: Estimated Split of App Dev Projects Source: State of Application Development 2019/2020. OutSystems ©

Development Times Are LongWe asked respondents how long on average it took their organization to deliver a new web or mobile application.

Fig. 13: Application Development Time Source: State of Application Development 2019/2020. OutSystems ©

Estimated Split of App Dev Projects

35% Innovation

65% Maintenance

35%

65%


35% Innovation

65% Maintenance

Application Development Time Source: State of Application Development 2019/2020. OutSystems ©

Mobile App Web App

1–2 months

3–4 months

5–6 months

7–12 months

Over 12 months

0 5 10 15 20 25 30 35 40

Web AppMobile App

17

By focusing on just those who said application delivery takes 5 months or longer, it becomes more obvious that mobile application development takes longer.

Fig. 14: Application Development Time 5 Months or Longer Source: State of Application Development 2019/2020. OutSystems ©

In the case of web applications, this represents a marked improvement in speed compared to our 2018 survey, in which 46% of respondents said delivery of web apps was taking 5 months or longer. As discussed in section 9 of this report, an increased proportion of respondents who are using low-code application development platforms has contributed to this speed improvement.

BacklogsWe wanted to understand whether the backlogs identified in last year’s survey are getting better or worse. Forty-five percent of respondents said they had between one and 10 web or mobile app development projects in the backlog, and 19% of respondents said they had more than 10 projects backing up. The picture varied according to company size, as shown in Fig. 15.

Fig. 15: Backlog by Organization Size Source: State of Application Development 2019/2020. OutSystems ©

Eleven percent of respondents said their backlog was getting worse, 50% said it was about the same, and 39% said their backlog had improved in the past year.

0

10

20

30

40

50

Backlog by Organization Size Source: State of Application Development 2019/2020. OutSystems ©

1–10 Projects Backing Up

>10 Projects Backing Up

No backlog

<500Employees

500–4,999Employees

5,000–10,000Employees

>10,000Employees

No backlog

1–10 Projects Backing Up

>10 Projects Backing Up

Application Development Time 5 Months or Longer Source: State of Application Development 2019/2020. OutSystems ©

Mobile App

Web App

45%

39%

18


Top Challenges That Slow Down App DeliveryRespondents identified the top three challenges that complicate or delay the delivery of web and mobile applications:

• Integration with legacy systems

• Fuzzy and changing requirements

• The time necessary for testing and QA

Fig. 16: Top Causes of Application Delivery Delays Source: State of Application Development 2019/2020. OutSystems ©

There was a diverse mixture of other issues; the following themes received multiple mentions (in order of frequency):

• Leadership and project management issues

• Lacking collaboration from business representatives

• Resources, skills, and budget

• Compliance challenges.

Deployment/coordinationwith IT operations

UX/UI design(including responsive design)

Data privacy concerns

Testing/QA

Fuzzy/changing requirements

Other

Top Causes of Application Delivery Delays Source: State of Application Development 2019/2020. OutSystems ©

Lack of technical dev skills

Security protectionand penetration testing

Legacy system integration/APIs missing or needs enhancing 16%

15%

14%

13%

12%

10%

9%

9%

2%

19

Shadow IT and Citizen DevelopmentWith many organizations complaining of slow application delivery speed and backlogs, shadow IT can be a growing concern to organizations, especially in cases where IT lacks oversight or capacity to govern the efforts of so-called citizen developers.

Respondents told us how effective they thought that their IT department was at governing citizen development. (We defined citizen developers as “Non-professional developers who don’t report to IT, but use tools sanctioned by IT for business-led development.”)

Fig. 17: Shadow IT and Citizen Development Source: State of Application Development 2019/2020. OutSystems ©

Shadow ITShadow IT is out of sight to IT personnel and is likely to pose a risk to IT security and privacy. Without oversight, there are many unknowns, such as what tools and platforms are being used, the control and governance of data, and security and privacy risks.

Citizen DevelopmentCitizen Development is sanctioned by IT and uses tools IT has approved. However, without adequate governance, it may pose many of the same threats as shadow IT.

Respondents described widely varying levels of success in their attempt to govern citizen development. In section 9 of the report, we explore how low-code and no-code platforms help IT organizations govern citizen development more successfully.

Shadow IT and Citizen Development Source: State of Application Development 2019/2020. OutSystems ©

15% Shadow-IT is a Risk for our Organization

49% Citizen Developers Exist. Varying Degree of Governance

36% We don't have Shadow-IT or Citizen Developers

49%

15%

36%

15% Shadow IT is a risk for our organization

49% Citizen developers exist at a varying degree of governance

38% We don’t have shadow IT or citizen developers

20


Responses differed by industry. Some believed shadow IT was less of an issue for their organization, and others were more likely to consider shadow IT a threat, as shown by figures 18 and 19, respectively.

Variance from Mean (0)

Fig. 18: Industries With Lower Risk of Shadow IT Source: State of Application Development 2019/2020. OutSystems ©

Variance from Mean (0)

Fig. 19: Industries With Higher Risk of Shadow IT Source: State of Application Development 2019/2020. OutSystems ©

The “Other” category included:

• Advertising and marketing

• Agriculture

• Construction, machinery, and homes

• Entertainment, sports, and leisure

• Nonprofit

• Real estate

-6 -5 -4 -3 -2 -1 0

Technology/Computers/Telecoms and Internet (-1.2%)

Software (-1.5%)

Retail and Consumer Durables Including Electronics (-1.7%)

Consultant/Consultancy/SI (-2.3%)

Utilities, Energy, and Extraction (-0.2%)

Industries With Lower Risk of Shadow IT Source: State of Application Development 2019/2020. OutSystems ©

Business Support, Logistics, and Transportation (-5.6%)

0 1 2 3 4 5 6

(3.8%) Government and Education

(1.4%) Healthcare and Pharmaceuticals

(1.3%) Food and Beverage

(0.3%) Banks and Financial Services (Not Insurance)

(5.7%) Other

Industries With Higher Risk of Shadow IT Source: State of Application Development 2019/2020. OutSystems ©

(0.0%) Insurance

(2.1%) Manufacturing, Automotive, Airlines, Aerospace, and Defense

21

6. In Search of SpeedAll organizations are seeking to improve their efficiency, speed, and quality of software delivery. We wanted to find out what investments organizations made in approaches and technology in the past year that were aimed at increasing delivery speed.

Fifty-seven percent of respondents with senior IT responsibilities said that the speed of application delivery was a KPI for their IT organization.

Has App Dev Gotten Faster or Slower in the Past Year?Respondents told us whether they thought that the typical speed of application delivery at their organization had become faster or slower in the past year. It was encouraging to learn that 33% of respondents thought delivery had gotten somewhat faster, and 8% said it was much faster than a year ago. In section 9, we investigate some of the factors that are driving this delivery speed advantage.

Fig. 20: Has App Dev Speed Improved in the Past Year? Source: State of Application Development 2019/2020. OutSystems © Applications Planned for Development Source: State of Application Development 2019/2020. OutSystems ©

8% Much faster

33% Somewhat faster

43% About the same/Unsure

11% Somewhat slower

4% Much slower

43%

33%

8%

8% Much faster

33% Somewhat faster

43% About the same/Unsure

11% Somewhat slower

4% Much slower

22


Software Release CadenceRespondents told us how frequently their organization typically releases new software versions. Sixty-eight percent said that releases are quarterly or more frequent.

Fig. 21: Frequency of Software Version Release Source: State of Application Development 2019/2020. OutSystems ©

Overall, 30% of respondents thought that the business side of their organization was satisfied with this release cadence, and a further 31% said somewhat satisfied.

Fig. 22: Business Satisfaction With Release Cadence Source: State of Application Development 2019/2020. OutSystems ©

Daily

Frequency of Software Version Release Source: State of Application Development 2019/2020. OutSystems ©

Weekly Monthly Quarterly Every 6 Months Annually

4%

17%

28%

7%5%

18%

30% Satisfied

31% Somewhat satisfied

25% Neither satisfied nor dissatisfied

9% Somewhat dissatisfied

4% Dissatisfied

Business Satisfaction With Release Cadence Source: State of Application Development 2019/2020. OutSystems ©

30% Satis�ed

31% Somewhat satis�ed

25% Neither satis�ed nor dissatis�ed

9% Somewhat dissatis�ed

4% Dissatis�ed

25%

31%

30%

23

Approaches to Increase Delivery SpeedWe asked respondents what approaches their organization had recently invested in to try and speed up application delivery. Customer-centric practices including customer journey mapping, design thinking, Agile Methodology, and lean UX accounted for over 60% of these responses.

Fig. 23: Investment in Approaches to Speed up Application Delivery Source: State of Application Development 2019/2020. OutSystems ©

Agile MaturityWe wanted not only to understand whether organizations were investing in Agile but also to gauge the progress of these practices. So, we asked respondents to assess their level of Agile adoption using this five-level maturity model.

Table 5: Five-Level Agile Maturity Assessment Source: State of Application Development 2019/2020. OutSystems ©

None of these

Customer JourneyMapping

Design ThinkingDesign Sprint

Agile

Lean UX

Investment in Approaches to Speed up Application Delivery Source: State of Application Development 2019/2020. OutSystems ©

Outsourcing somedevelopment

DevOps orSecDevOps

60%

31%

30%

28%

20%

14%

11%

Agile Maturity Assessment

Level 1 Initial: We lack consistency and need training to get everyone aligned.

Level 2 Just Started: Processes not fully defined. Basic level of agile adoption. Development and testing are not fully in sync yet

Level 3 Defined: Our whole team is using well-defined agile processes, and we’re consistently delivering sprint after sprint.

Level 4 Measured: We’re measuring code quality and other key measures. Our focus is on engineering maturity.

Level 5Optimizing: We develop on schedule and release on demand. We’ve invested in automation for continuous integration and deployment. Consistent delivery across teams. Self-organized, sustainable, continuous improvement based on KPIs.

24


As shown in Fig. 24, nearly 60% of respondents chose level 2 or 3 in their self-assessment. The overall average agile maturity score was 2.7, up very slightly from 2.6 last year.

Fig. 24: Agile Maturity Levels Source: State of Application Development 2019/2020. OutSystems ©

In section 9 of this report, we explore some of the characteristics shared by high performers.

Technology Used to Speed up Application DeliveryWe asked what technology organizations had invested in over the past year to increase the speed of application delivery. Respondents could select multiple options. Overall, 55% of organizations had invested in cloud, 39% in low-code, and 26% in mobile application development platforms. Containers and microservices and new languages and frameworks also scored above 20%.

Fig. 25: Investments in Technology to Speed Up Application Delivery Source: State of Application Development 2019/2020. OutSystems ©

Agile Maturity Levels Source: State of Application Development 2019/2020. OutSystems ©

Level 1 - Initial

Level 2 - Just Started

Level 3 - De�ned

Level 4 - Measured

Level 5 - Optimizing 10%

29%

30%

14%

16%

Investments in Technology to Speed Up Application Delivery Source: State of Application Development 2019/2020. OutSystems ©

None of these

New languages orframeworks

Mobile applicationdevelopment platform

Cloud

BPM platform

Containersand microservices

Low-code applicationdevelopment platform 39%

26%

24%

21%

17%

12%

9%

55%

Digital ProcessAutomation/RPA

25

7. Developer Headcount, Skills, and SourcingRespondents told us how many software developers they employed and whether headcount had increased during the past year.

Fig. 26: Number of Developers Employed Source: State of Application Development 2019/2020. OutSystems ©

Many organizations complain that it is increasingly hard to hire IT staff with the technical or development skills that they need. In this year’s survey, respondents told us about their app dev recruitment, as well as their use of consultants. They also ranked their talent development priorities for a number of specialisms.

Fig. 27: Developer Team Size Higher or Lower Than Last Year Source: State of Application Development 2019/2020. OutSystems © Developer Team Growth Source: State of Application Development 2019/2020. OutSystems ©

44% About the same

13% Not Sure

36% Higher

7% Lower

44%

7%

36%

13%

44% About the same

13% Not Sure

36% Higher

7% Lower

< 50 Developers

51 to 200 Developers


Number of Developers Employed Source: State of Application Development 2019/2020. OutSystems ©


> 1,000 Developers 13%

4%

9%

18%

57%

26


RecruitmentRespondents told us which app dev skills their organization had hired in the past year. Over two-thirds had hired web developers, and over 40% said they had hired both full-stack and mobile developers.

Fig. 28: Roles Recruited in Past Year Source: State of Application Development 2019/2020. OutSystems ©

UI/UX Design Specialist

Low-Code Developer

BI/Analytics DataScientist Specialist

Cybersecurity Specialist

Arti�cial Intelligence /Machine Learning Specialist

IoT Specialist

API/IntegrationBackend Developer

Mobile Developer

Full-Stack Developer

Web Developer

Roles Recruited in Past Year Source: State of Application Development 2019/2020. OutSystems ©

67%

42%

40%

39%

27%

27%

26%

18%

16%

9%

27

Skills ShortagesRespondents shared their opinion of how difficult it was to hire suitably skilled staff. As shown in Fig. 29, the four most difficult to hire are artificial intelligence/machine learning, cybersecurity, IoT, and full-stack developers.

Fig. 29: Skills Recruitment Challenges Source: State of Application Development 2019/2020. OutSystems ©

Easy Very DifficultVery Easy DifficultNeutral

Skills Recruitment Challenges Source: State of Application Development 2019/2020. OutSystems ©




API/Integration/Backend Developer

Mobile Developer

Web Developer

Arti�cial Intelligence/Machine Learning Specialist

BI/Analytics DataScientist Specialist

IoT Specialist

Low-Code Developer

0 10 20 30 40 50 60 70 80 90 100

Very Easy Easy Neutral Di�cult Very Di�cult

0 10 20 30 40 50 60 70 80 90 100

28


Use of Consultants and OutsourcingRespondents told us which app dev skills their organization was likely to source from consultants or outsourcers in the next year. Even though web developers were described as easier to hire than any of the other specialists, 15% of respondents expect to partly source their requirements from consultants in the year ahead.

Fig. 30: Skills to be Sourced From Consultants or Outsourcing in 2019 Source: State of Application Development 2019/2020. OutSystems ©

Skills Development PrioritiesRespondents told us which app dev skills their organization was prioritizing for staff development in 2019. Web development, mobile development, and API/integration/backend stood out as the top priorities.

Fig. 31: Skills Development Priorities in 2019 Source: State of Application Development 2019/2020. OutSystems ©

Skills to be Sourced From Consultants or Outsourcing in 2019 Source: State of Application Development 2019/2020. OutSystems ©


IoT Development

API/Integration Backend Development

Mobile Development

Web Development


Arti�cial Intelligence/Machine Learning Specialist


BI/Analytics Data Scientist Specialist

Low-Code Developer

14%11%

10%10%

9%9%9%

8%6%

15%

Arti�cial Intelligence/Machine Learning

Low-Code Development

BI/Analytics Data Science

Cybersecurity

UI/UX Design

IoT Development

Full-Stack Development

API/Integration Backend Development

Mobile Development

Web Development

Skills Development Priorities in 2019 Source: State of Application Development 2019/2020. OutSystems ©

14%13%

10%10%

9%

7%5%

15%

10%

8%

29

8. Low-Code Is on the RiseIn our 2018 State of Application Development survey, we found that 34% of respondents were using low-code application development platforms, and a further 9% said that their organization was about to start using one. So, this year we were keen to answer three questions:

• Did increased adoption come about?

• What kinds of developers are using low-code platforms?

• What kinds of applications are being delivered with low-code?

Who Is Using Low-Code?We asked respondents whether a no-code or low-code development platform was currently part of their IT strategy. Forty-one percent said that their organization was already using such a platform, and a further 10% said they would start to use one soon.

Fig. 32: Low-Code or No-Code in IT Strategy Source: State of Application Development 2019/2020. OutSystems ©

Observant readers may notice that in Fig. 25 we reported a 39% adoption figure. That question was slightly different, as it asked about technology investment in the past year that was specifically related to speeding up development and was alongside multiple competing answers.

Adoption by Organization SizeAdoption of low-code did not vary significantly across different organization sizes. All were within a range of 38–42%.

Is a no-code or low-code development platform currently part of your IT strategy?

Low-Code or No-Code in IT Strategy Source: State of Application Development 2019/2020. OutSystems ©

41% Yes - already using

10% Yes - starting soon

29% Not planned

21% Not sure

41%

10%29%

21%

Is a no-code or low-code development platformcurrently part of your IT strategy?

41% Yes - already using

10% Yes - starting soon

29% Not planned

21% Not sure

30


Adoption by Industry SectorsAdoption of low-code varied considerably across different industries. Compared to the mean adoption level of 41%, we found adoption varied from +17% in the utilities, energy, and extraction sectors, down to –15% in the government sector.

Fig. 33: Low-Code/No-Code Adoption Variance by Industry Source: State of Application Development 2019/2020. OutSystems ©

In section 9 of this report, we explore whether adopters of low-code exhibit any performance advantage compared to industry peers that have not yet adopted low-code.

-20 -15 -10 -5 0 5 10 15 20

Consultant/Consultancy/SI (11%)

Retail and Consumer Durables Including Electronics (-7%)

Manufacturing, Automotive, Airlines, Aerospace, and Defense (-9%)

Government and Education (-15%)

Software (6%)

Technology/Computers/Telecoms and Internet (2%)

Food and Beverage (2%)

Mean Low-Code Adoption (41%)

Other (0%)

Business Support, Logistics, and Transportation (-3%)

Insurance (-4%)

Healthcare and Pharmaceuticals (-5%)

Banks and Financial Services (Not Insurance) (-6%)

Utilities, Energy, and Extraction (17%)

Organizational Agility by Industry Source: State of Application Development 2019/2020. OutSystems ©

31

Kinds of Low-Code DevelopersRespondents were asked what kinds of developers and low-code usage scenarios existed in their organization. They were allowed to select multiple options. We found the use of low-code outweighed the use of no-code by a factor of 4.7.

In the case of low-code, professional IT developers outweighed business developers by a factor of 1.6.

Fig. 34: Kinds of Low-Code Developer s Source: State of Application Development 2019/2020. OutSystems ©

Number of Low-Code Developers per OrganizationRespondents were asked how many low-code developers worked in their organization (including contractors). As one would expect, larger organizations tended to have higher populations of low-code developers.

Fig. 35: Number of Low-Code Developers per Organization Source: State of Application Development 2019/2020. OutSystems ©

0 10 20 30 40 50

Number of Low-Code Developers per Organization Source: State of Application Development 2019/2020. OutSystems ©

1–5 Low-Code Developers 6–10 Low-Code Developers 11–20 Low-Code Developers

21–50 Low-Code Developers Over 50 Low-Code Developers

<500Employees

500–4,999Employees

5,000–10,000Employees

>10,000Employees

1–5 Low-Code Developers




Over 50 Low-Code Developers

Kinds of Low-Code Developers Source: State of Application Development 2019/2020. OutSystems ©

No-code platform used by businessusers, with no intervention from IT

No-code platform used by businessusers, in collaboration with IT

Low-code platform used by businessusers, in collaboration with IT

Low-code platform used byprofessional IT developers 69%

44%

16%

8%

32


Number and Types of Apps Built With Low-CodeTo gauge how actively organizations were using low-code, we assessed the number and types of applications that had been delivered.

Number of Low-Code Apps DeliveredRespondents were asked how many applications they had successfully delivered using low-code. Overall, the average number of applications delivered was around 12. However, as shown in Fig. 36, the answer varied according to the number of low-code developers that the organization had.

Fig. 36: Number of Low-Code Apps Delivered Source: State of Application Development 2019/2020. OutSystems ©

Kinds of Projects Low-Code Is Being Used ForWe asked what kinds of projects low-code was being used for. As shown in Fig. 37, portals and web-based applications used by both employees and customers or partners ranked highest. Other usage scenarios were very evenly distributed, including mobile applications, (employee and customer-facing), replacing legacy systems, extending existing systems, and rapid prototyping.

Twelve percent of respondents said they were just in the process of starting.

Fig. 37: Projects Using Low-Code Source: State of Application Development 2019/2020. OutSystems ©

0

20

40

60

Number of Low-Code Apps Delivered Source: State of Application Development 2019/2020. OutSystems ©

11–20 Apps

20–50 Apps

6–10 Apps

Over 50 Apps

1–5 Apps

1 to 5 Devs 6 to 10 Devs 11 to 20 Devs 21 to 50 Devs Over 50 Devs0

20

40

60

80

1–5 Apps

6–10 Apps

11–0 Apps

20–50 Apps

Over 50 Apps

Replacing legacy systems

Mobile apps -Customer/Partner facing

Extending existing systems

Mobile apps - Employee facing

Customer/Partner facing -Portals and web-based applications

Employee facing - Portalsand web-based applications

Projects Using Low-Code Source: State of Application Development 2019/2020. OutSystems ©

49%

47%

41%

40%

36%

40%

40%

Rapid prototyping

33

Largest Number of Users of a Low-Code ApplicationRespondents told us what the largest number of users was for any of their low-code applications. While 21% said less than 50 users, 35% reported that they had deployed applications that were used by over 1,000 users, and of these, 12% had over 10,000 users.

Fig. 38: Largest Number of Users of App Delivered Using Low-Code Source: State of Application Development 2019/2020. OutSystems ©

Why Some Organizations Are Still Not Using Low-CodeWe asked respondents who said that their organization was not using a low-code platform, or was not thinking of using one, what were the main reasons that discouraged them? (Multiple options were allowed.) As you can see in Fig. 39, lack of knowledge is the main barrier, and concerns about lock-in, flexibility, scalability, and security closely followed.

Fig. 39: Reasons for Not Using or Considering Low-Code Source: State of Application Development 2019/2020. OutSystems ©

These same concerns were expressed by non-adopters in last year’s survey, and yet, low-code adoption continues to grow. Our blog post series on the Myths, Fears, and Realities of Low-Code may be of interest to readers who would like assistance combating these fears. Alternatively, read on for a detailed analysis of the performance advantages exhibited by low-code users in this year’s survey.

101–500

51–100

1–50

501–1,000

1,001–5,000

5,001–10,000

Over 10,000

Largest Number of Users of App Delivered Using Low-Code Source: State of Application Development 2019/2020. OutSystems ©

12%

7%

16%

12%

17%

15%

21%

Two Most Important Types of App Dev Projects Source: State of Application Development 2019/2020. OutSystems ©

Concern about securityof the apps created

Concern about scalabilityof the apps created

Don't believe we could buildthe types of app we need

Concern about “lock-in” with ano-code/low-code vendor

Lack of knowledge aboutlow-code platforms

Other

47%

37%

32%

28%

25%

10%

https://www.outsystems.com/blog/posts/what-can-you-build-with-low-code/

34


9. Low-Code Is DeliveringOur 2019 survey revealed that 49% of respondents were either not planning to use low-code or were undecided. This section of the report is devoted to the undecided, and we hope to encourage such readers to join the 51% who said they were already using, or about to start using, a low-code application development platform.

Main Reasons for Using Low-CodeRespondents told us their main reasons for using a low-code platform, and multiple responses were allowed. Three answers stood out: accelerate digital transformation, increase responsiveness to the business, and reduce dependency on hard-to-hire technical skills.

Fig. 40: Reasons for Using Low-Code Platforms Source: State of Application Development 2019/2020. OutSystems ©

Most of the responses under “other” were variances on the theme of faster delivery, although some other interesting comments included “reduce project creep” and “the ability to focus on important business requirements instead of technical details.”

Low-Code Users Exhibit Multiple Performance AdvantagesWe analyzed survey responses from those who said they were already using low-code and found compelling evidence that they were outperforming industry peers that were not using low-code. Those advantages are summarized below.

66% Accelerate digital innovation/transformation

22% Protect against technology churn

66% Increase responsiveness to the business

20% Enable citizen developers to improve internal processes

45% Reduce dependency on hard-to-hire technical skill

2% Other

28% Escape legacy debt

Reasons for Using Low-Code Platforms Source: State of Application Development 2019/2020. OutSystems ©

66% Accelerate digital innovation/transformation

66% Increase responsiveness to the business

45% Reduce dependency on hard-to-hire technical skills

28% Escape legacy debt

22% Protect against technology churn

20% Enable citizen developers to improve internal processes

2% Other

66% 66%

45%

28%22% 20%

2%

35

Digital Transformation MaturityLow-code users had a 16% higher self-assessment score for digital transformation maturity compared to those not using low-code.

Fig. 41: Digital Transformation Maturity Advantage for Low-Code Users Source: State of Application Development 2019/2020. OutSystems ©

The Proportion of App Dev Devoted to InnovationLow-code users said that more of their app dev effort was devoted to innovation instead of maintenance, outperforming those not using low-code by 5%.

Fig. 42: Innovation vs. Maintenance - Low-Code Users’ Advantage Source: State of Application Development 2019/2020. OutSystems ©

Digital Transformation Maturity Advantage for Low-Code Users

Overall Average Using Low-Code Not Using Low-Code

16% Low-CodeAdvantage

3.74

4.00

3.44


Innovation vs. Maintenance - Low-Code Users' Advantage Source: State of Application Development 2019/2020. OutSystems ©

Innovation

Maintenance0

20

40

60

80

100

5%Advantage

UsingLow-Code

Not UsingLow-Code

Innovation

Maintenance

36


Using Low-Code

Not Using Low-Code

Software Release CadenceUsers of low-code said that they release new software versions more frequently, being nearly 7% more likely than those not using low-code to release monthly or more frequently.

Fig.43: Release Cadence: Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

Business Satisfaction With Software Release FrequencyThirty-seven percent of low-code users described their business as satisfied with their frequency of software release, compared to just 26% of those not using low-code.

Fig.44: Business Satisfaction With Release Cadence - Low-Code Users’ Advantage Source: State of Application Development

2019/2020. OutSystems ©

Organizational AgilityLow-code users had an 8% higher organizational agility self-assessment score compared to those not using low-code.

Fig. 45: Organizational Agility Advantage for Low-Code Users Source: State of Application Development 2019/2020. OutSystems ©

0

10

20

30

40

50

60

Release Cadence: Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

Using Low-Code

Not Using Low-Code

Annually Every 6 Months Quarterly Monthly orMore Frequently

Organizational Agility Advantage for Low-Code Users

63%

71%


Using Low-Code

Not Using Low-Code


Dissatisfied

Somewhat dissatisfied

Neither satisfied nor dissatisfied

Somewhat satisfied

Satisfied

Business Satisfaction with Release Cadence - Low-Code Users' Advantage Source: State of Application Development 2019/2020. OutSystems ©

Dissatis�ed

Somewhat dissatis�ed

Neither satis�ed nor dissatis�ed

Somewhat satis�ed

Satis�ed

UsingLow-Code

Not UsingLow-Code

37%

26%

37

Agile MaturityLow-code users were 20% more likely to rate their agile maturity as level 3, 4, or 5 compared to those not using low-code.

Fig.46: Agile Maturity Score - Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

BacklogLow-code users were 12% more likely to say that their backlog had improved in the past year, compared to those not using low-code.

Fig.47: App Dev Backlog Improved – Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

0%

20%

40%

60%

80%

100%

Agile Maturity Score - Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

Low-Code+20%


Level 3 - De�ned

Level 4 - Measured

7% 13%11%

19%

28%

33%

Not Using Low-Code(Avg. 2.51)

Using Low-Code(Avg. 3.01)

Level 1 - Initial

Level 5 - OptimizingLevel 5 - Optimizing

Level 4 - Measured

Level 3 - Defined


Level 1 - Initial

App Dev Backlog Improved – Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

Backlog has improved About the same Backlog is worse

UsingLow-Code

0 20 40 60 80 100

Not UsingLow-Code

46%

34%


About the sameBacklog has improved Backlog is worse

38


Web Application Development SpeedLow-code users were 11% more likely to deliver web applications in 4 months or less compared to those not using low-code.

Fig. 48: Web App Development Time - Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

Mobile Application Development SpeedLow-code users were 15% more likely to deliver mobile applications in 4 months or less compared to those not using low-code.

Fig. 49: Mobile App Development Time - Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

Web App Development Time - Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

0

20

40

60

80

100

11%Low-CodeAdvantage

7–12 months

5–6 months

4 months or less

68%

57%

Using Low-Code Not Using Low-Code

Over 12 months

4 months or less

5–6 months

7–12 months

Over 12 months

0

20

40

60

80

100

15%Low-CodeAdvantage

7–12 months

5–6 months

4 months or less

64%

49%

Using Low-Code Not Using Low-Code

Over 12 months

Mobile App Development Time - Low-Code Advantage Source: State of Application Development 2019/2020. OutSystems ©

4 months or less

5–6 months

7–12 months

Over 12 months

39

Governance of Citizen Developers – Low-Code AdvantageLow-code users appear to have more success at governing citizen development in their organization compared to those not using low-code.

Fig. 50: Degree of Governance of Citizen Development Source: State of Application Development 2019/2020. OutSystems ©

In summary—

Thirty-seven percent of low-code users described significant success at governing such development, a 9% advantage compared to organizations not using low-code.

Thirty-five percent of respondents whose organizations were not using low-code described ineffective governance of such users who could pose a risk to their organization. By comparison, users of low-code exhibited an 11% advantage.

Degree of Governance of Citizen Development Source: State of Application Development 2019/2020. OutSystems ©

Using Low-CodeNot Using Low-Code

1. There is little control or oversight from IT, which could pose a risk to our organization.

2. We try, with limited success, to govern citizen development and point them in the direction of favored tools/platforms.

3. We govern citizen development lightly.We have approved tools/platforms that we encourage these people to use.

4. We govern citizen development rigorously. We have approved tools or platforms that these people must use, and we provide training and guidance to maximize success.

35%

37%

9%

19%

18%

17%

16%

21%

15%

10%

4. We govern citizen development rigorously. We have approved tools or platforms that these people must use, and we provide training and guidance to maximize success.

3. We govern citizen development lightly. We have approved tools/platforms that we encourage these people to use.

2. We try, with limited success, to govern citizen development and point them in the direction of favored tools/platforms.

1. There is little control or oversight from IT, which could pose a risk to our organization.

37%

35%

40


10. Organizational Agility and the Case for Low-Code

“Whether or not there is a recession in the near term, companies face numerous political, economic, and climate risks. Responding to these risks is challenging… To prepare for an economic downturn, use the same strategy you would in boom times—become an adaptive enterprise.”3

—Forrester Research, March 2019

Downturns are difficult, perhaps impossible to predict, and it’s certainly not our place to be the harbinger of economic doom. Indeed, according to our survey respondents, many other possible causes of business disruption were deemed more threatening than stock market volatility.

The Agility to Escape Disruption or Be a Disruptor

3. Forrester Research - Ten Ways To Prepare For The Next Recession

Interestingly, low-code can help IT organizations counteract every one of the threats highly ranked by this year’s survey respondents.

Significant Changes in Customer Preference or BehaviorVisual model-driven development is up to 10 times faster than hand coding and therefore perfectly complements customer-centric development practices, including design thinking and Agile Methodology.

Low-code users exhibited a 20% agile maturity advantage compared to those not using low-code. So, if you want the agility to adapt customer-facing systems at the speed your customers demand, low-code can give you that agility.

Disruptive Regulatory ChangeA top concern for banking and a significant concern for many others, regulatory change can impose urgent changes across swathes of customer-facing applications. What this year’s survey shows is that organizations that have adopted low-code are using it to tackle precisely these kinds of projects: customer or partner facing portals and web-based applications (47%), replacing legacy systems (40%), and mobile apps used by customer or partners (40%).

With omnichannel development challenges such as these, architecting for reuse is hugely important, and the right low-code platform includes multiple capabilities that help maximize reuse to accelerate development and maintenance even further.

https://www.prosci.com/resources/articles/organizational-agility-strategic-imperative

https://www.forrester.com/report/Ten+Ways+To+Prepare+For+The+Next+Recession/-/E-RES149235

41

Disruptive Cyber AttackWith the right kind of low-code platform, visually composed application models are automatically translated into secure, optimized code patterns. This helps IT organizations move application security “upstream,” reducing the security burden that slows down testing and delivery later on.

Considering the well-publicized shortage of qualified cybersecurity professionals and the 64% of survey respondents who complained about recruiting them, IT leaders should explore how automation reduces the security burden placed on their teams. Low-code should be part of that picture.

Digital Disruption From More Nimble CompetitorsOn multiple measures, the survey results attest to superior speed and agility enjoyed by users of low-code compared to those not using low-code:

• A 16% higher score for digital transformation maturity

• An 8% higher score for organizational agility

So, the question is: do you want to escape disruption, or be the disruptor?

In either case, organizational agility is the key, and as the results in this year’s survey report show, low-code application development can help your organization be more responsive, whatever economic challenges lie ahead.

• A 5% higher proportion of app dev devoted to innovation

• A superior software release frequency

• Apparent higher business department satisfaction with release frequency

• An agile maturity advantage of 20%

• Improving backlogs, with a 12% advantage compared to those not using low-code

• Faster software development speed with significantly more respondents delivering web and mobile applications in less than 4 months.

With 41% of organizations already using low-code and another 10% saying they’re about to start, there’s an increasing risk that late adopters will face increasing disruption from more nimble competitors.

42


11. Next StepsWe’d like to say a huge thank you to the 3,350 IT professionals, application developers, and senior business stakeholders who took considerable efforts to complete this survey. Without their interest and dedication to considering each of these questions and giving their full and frank responses, this report would not have been possible.

If you’ve read this far, then the chances are you’re researching modern approaches to application development and low-code in

OutSystems Evaluation Guide

Try OutSystemsFor Free

See What Others Are Saying About OutSystems

This comprehensive guide answers the most common technical questions asked by teams that are considering OutSystems.

Get started with your own FREE personal environment on the OutSystems cloud, including full and free access to all our e-learning and documentation

Our Happy Customers microsite gives you one-click access to thousands of independent user reviews on websites like Gartner Peer Insights, Capterra, TrustRadius, G2-Crowd, and GetApp.

Read the Guide Try Now Free Feel the Love

Thank you for reading. Whatever questions you have, we’d love to hear from you.

some detail. Perhaps your own organization’s situation is similar to that of the 59% of respondents whose organizations have not yet implemented low-code. Or, perhaps you’re a little further down the line like the 11% of respondents who said they’d be starting to use low-code soon.

Getting started with low-code is meant to be easy, and that’s certainly true of OutSystems. Here are three recommended next steps to continue your learning.

https://success.outsystems.com/Evaluation

https://www.outsystems.com/home/GetStartedForFree.aspx

https://www.outsystems.com/happy-customers/

43

12. DemographicsThe survey was promoted primarily to IT professionals who were not OutSystems customers to ensure we surveyed a broad cross-section of organizations and not just OutSystems fans. To achieve this, we turned to third-party media.

RolesRespondents were developers, CIOs, IT managers, and other professionals, representing thousands of companies from around the world who agreed to share objective feedback based on their experiences.

Fig. 51: Primary Job Function Source: State of Application Development 2019/2020. OutSystems ©

GeographyThirty-five percent of responses came from North America. Roughly 70% of the respondents’ organizations have headquarters in either Europe or North America, 17% in Asia and the Pacific, and the remainder spread across the rest of the world.

Fig. 52: Geography Source: State of Application Development 2019/2020. OutSystems ©

10%

10%

11%

13%

34%

Primary Job Function

34% Application Developer

13% Other

11% Manager of Application Developers

10% IT Leader/CIO/CTO

10% Architect (IT/Enterprise)

7% Business Analyst

6% IT Operations (including DevOps)

3% Non-IT Senior Leader, VP, C-Level Executive

3% Data Specialist (Data Scientist, Analytics, DBA)

2% Security Specialist

2% Software Test/QA


34% Application Developer

7% Business Analyst

13% Other

6% IT Operations (including DevOps)

11% Manager of Application Developers

3% Non-IT Senior Leader, VP, C-Level Executive

2% Software Test/QA

10% IT Leader/CIO/CTO

3% Data Specialist (Data Scientist, Analytics, DBA)

10% Architect (IT/Enterprise)

2% Security Specialist

35%

7%

34%

7% 17%

Geography

35% North America

34% Europe

17% Asia and Pacific

7% South and Latin America

7% Africa, Middle East, and CIS


35% North America

34% Europe

17% Asia and Pacific

7% South and Latin America

7% Africa, Middle East, and CIS

44


Size of OrganizationResponses came from organizations of all sizes, approximately half with under 500 employees, and one in six came from organizations with more than 10,000 employees.

Fig. 53: Company Size Source: State of Application Development 2019/2020. OutSystems ©

IndustriesAll industries were represented in the survey, the top seven being software, technology (including computers, telecommunications, internet), consultants and system integrators, government and education, manufacturing (including automotive, aerospace, and defense), and banks and financial services.

Fig. 54: Industries Source: State of Application Development 2019/2020. OutSystems ©

Company Size

50% < 500 Employees

25% 500–4,999 Employees

8% 5,000–10,000 Employees

16% > 10,000 Employees

50% 25% 8% 16%


50% < 500 Employees

25% 500–4,999 Employees

8% 5,000–10,000 Employees

16% > 10,000 Employees

10%13%

16%

20%

Industries Source: State of Application Development 2019/2020. OutSystems ©

13% Consultant/Consultancy/SI

10% Government and Education

20% Software

16% Technology/Computers/Telecoms and Internet

7% Others

7% Manufacturing, Automotive, Aerospace, and Defense

6% Banks and Financial Services (Not Insurance)

5% Healthcare and Pharmaceuticals

5% Business Support, Logistics, and Transportation

4% Insurance

3% Utilities, Energy, and Extraction

2% Retail and Consumer Durables Including Electronics

2% Food and Beverage

20% Software

7% Manufacturing, Automotive, Aerospace, and Defense

16% Technology/Computers/Telecoms and Internet

6% Banks and Financial Services (Not Insurance)

13% Consultant/Consultancy/SI

5% Healthcare and Pharmaceuticals

3% Utilities, Energy, and Extraction

10% Government and Education

5% Business Support, Logistics, and Transportation

2% Retail and Consumer Durables Including Electronics

7% Others

4% Insurance

2% Food and Beverage

45

13. About OutSystemsOutSystems is the number one platform for low-code rapid application development. Thousands of customers worldwide trust OutSystems as the only solution that combines the power of low-code development with advanced mobile capabilities, enabling visual development of entire application portfolios that easily integrate with existing systems.

The Fastest Way to Build Enterprise-Grade Applications

• Visually develop full-stack apps

• Integrate with everything

• Deploy to any device

• No lock-in, no boundaries

Learn more at www.outsystems.com

http://www.outsystems.com

www.outsystems.com

© Copyright OutSystems 2019. All rights reserved. OutSystems and the OutSystems logo are registered trademarks of OutSystems. All other trademarks are the property of their respective companies. Unauthorized copying

or distributing is a violation of copyright law.

the state of application development

Documents